Nuremberg, 04.12.2019: In the financial year for 2018/2019 (reporting date 31.05.2019) the GRR Group again recorded strong growth. After the record year of 2017/2018 the result of the leading Nuremberg company specialised in basic retail was at 5.4 million euros significantly above expectations and almost on the level of the previous year. In the same period the group turnover decreased slightly by 2.6 percent from 23.1 to 22.5 million euros. More than 60 employees currently manage approximately 410 properties with a total area of about 850,000 square metres and a volume of roughly 1.5 billion euros.

Fourth GRR fund started

The newly established GRR German Retail Fund No.4 will promote further growth for the company. The fund's starting portfolio with a total volume of approximately 35 million euros will be certified in the course of this December. The fund will enable institutional investors to invest diversely in the German food retail sector. The recently founded GRR Funds GmbH has been commissioned with the sale of the fund's units in order to make the sales activities for the fund even more professional.

Focus on basic retail - the basis for a successful business model

"We have successfully managed to further strengthen our position as specialists for basic retail, i.e. real estate primarily used by food retailers", explains director Martin Führlein. "After roughly one and a half years our third fund at nearly 380 million euros has almost achieved its planned investment volume and the fourth fund was started recently. With an investment volume of 1.5 billion euros and consistently good economic results the previous funds initiated by us have triggered the interest of national and also increasingly international investors. We are continuing to expand our business with individual clients."

Large transactions succeed in competitive environment

Just last month in November the GRR Group acquired the second largest portfolio in its history. With a total investment volume of over 130 million euros, the "Gabius" portfolio with 41 properties including retail food markets and discounters in ten German federal states now enables GRR to further build on the successful portfolio acquisitions of previous years. As a result, the investment volume of the GRR German Retail Fund No. 3 has almost been fully achieved. Although the volume of the transactions in the financial year for 2018/2019 went down after the record year of 2017/2018, the volume of transactions in the current financial year is set to clearly rise.

"The current level of transactions is significantly above expectations. Here we have been able to benefit from our strong position in the market as an expert for basic retail. Despite intense competition, we receive regularly offers to acquire retail properties off-market without a costly bidding process", emphasizes director Andreas Freier. "Sellers and investors know that we thoroughly analyse the potential of properties prior to acquisition and then selectively invest to upgrade the retail markets. This enables us to increase the value of the retail properties via the asset management of the GRR Group. This is beneficial for our tenants and also our investors."

Investment phase for GRR German Retail Fund No. 4 started

The investment volume for the GRR German Retail Fund No. 3 set up last year will be fully realised by the end of this year even though due to high demand the investment volume was extended to roughly 380 million euros. The GRR German Retail Fund No. 4 is the fourth open alternative investment fund for basic retail set up by the GRR Group. The planned investment volume is roughly 350 million euros and the planned equity is roughly 200 million euros. The final negotiations are currently being concluded to acquire a starting portfolio of 11 discounters with rental contracts between 12 and 15 years. At the same time the GRR Group has acquired a further portfolio of six markets for a large pension fund which has been looked after by GRR as an individual client for two years.

"Long-term investments with high value retention are currently very attractive for institutional investors. Insurance companies, asset managers and pension funds appreciate our expertise in the area of basic retail. In addition to our own funds and own retail properties, individual clients provide the GRR Group with growth opportunities", underlines Martin Führlein.

Prospects: GRR Group further on course for growth

After the successful start of the current financial year the GRR Group predicts a profitable growth in turnover and return on investments. The disposition of the ICARUS portfolio has also provided the group with additional liquidity for new investments and modernisation measures. "The retail trade is increasingly developing into a place to go for our daily needs, in addition to shopping for food. To meet this demand the sales areas are being enlarged and upgraded. Services are being added such as parcel services or financial services, and cafes and hot food counters are also being installed even in discounters. In this context, we are investing in our retail properties and at the same time increasing their value", explains Andreas Freier. "Our tenants and investors benefit from the high attractiveness of the food markets managed by us."

Contact person:

Martin Führlein
CEO, GRR Group
Tel.: +49 911 95512620 | Email: martin.fuehrlein@grr-group.de

Andreas Freier
Managing director, GRR Group
Tel.: +49 911 95512630 | Email: andreas.freier@grr-group.de

Press contact:

Matthias Struwe
Eye Communications, Full Service Public Relations Agency
Tel.: +49 761 1376221 | Email: m.struwe@eyecommunications.de

About the GRR Group

GRR Real Estate Management GmbH is a real estate company specialised in retail properties in Germany, with a focus on investment and asset management. The company has its headquarters in Nuremberg and employs 65 people. GRR currently has around 410 properties under management for various investors, comprising approximately 850,000 square metres and valued at around 1.5 billion euros.

Find more information on the GRR Group at www.grr-group.de.